Art Trading & Finance is a pioneer in art and in finance
Dear readers, clients, and friends,
we have the pleasure of circulating an article that appeared in “Le Monde” on 24 March demonstrating very clearly that art is now being used by a growing number of banks and financial institutions as a means of diversifying portfolios and investments.
Art Trading & Finance is a pioneer in this industry. We were indeed among the first in continental Europe to actively promote art as a completely separate asset class.
Our economic and financial expertise together with our love for art are the best guarantee of success for our clients.
When banks advise you in art
“LE MONDE ARGENT” | 24.03.2018
According to the “Art and Finance” report published in 2016 by Deloitte Luxembourg, in tandem with ArtTactic, 78% of Wealth Management Advisors say their activities involve services relating to art. This is already the case for large private banks. Having worked with the London art advice company, 1858, for ten years, Societe Generale Private Banking is planning on increasing its internal supply this year. UBS, Neuflize OBC and BNP Paribas have also offered specialized integrated services for a long time.
So what is their role? To guide their clients, novices and regulars alike; to optimize taxation on their wealth; and to assist them in the purchase and sale of works, including in cases of inheritance and divorce. “Our role is to be facilitators”, says Mathilde Courteault, head of the art department at Neuflize OBC. She adds: “We do not advise on purchases. We don’t say to them buy that, you will earn 10% in ten years, but we do offer bespoke services.“ And educational ones too. Questions abound: What’s the right price for a work of art? Can you sell over the counter or at auctions? Should you sell a work quickly or is it better to wait?
To answer these questions, they have to know the art market like the back of their hand, or at least have access to a strong network of experts to call on. Rather than trying to be a jack of all trades, some choose to specialise. BNP Paribas, for example, focuses only on the fine arts. If the bank charges for this advice, all transactions made become subject to commission. At BNP Paribas this is regressive, going from 10% to 2.5%, with the minimum amount coming to 60,000 euros in France and 150,000 euros abroad.
The service doesn’t end there. In order to stand out, private banks are adding new services to their range. BNP Paribas has made a deal for three of the bank’s clients to lend Pierre Soulages works to the eponymous museum in Rodez. “These collectors wanted their works to be in museums”, says Antoinette Leonardi, head of the bank’s Art department. Neuflize OBC is the only private bank in Paris to accept works of art as securities to guarantee bank loans. Despite it being all the rage in the US, this line of business remains a marginal part of the bank's activities. “We only do it for our long-standing customers”, adds Mathilde Courteault carefully.
In France, isn’t January’s arrival of a tax on property wealth, that replaced the country's existing wealth tax (the ISF), going to change how things are done? While a wealth redistribution strategy is forecast, it will be difficult to know whether this will benefit the art market and financial products.
